AU-1.1 AU-1.1 Appointment of Auditors
AU-1.1.1
Conventional bank licensees must obtain prior written approval from the BMA before appointing or re-appointing their auditors.AU-1.1.2
As the appointment of auditors normally takes place during the course of the firm's annual general meeting,
conventional bank licensees should notify the BMA of the proposed agenda for the annual general meeting in advance of it being circulated to shareholders. The BMA's approval of the proposed auditors does not limit in any way shareholders' rights to subsequently reject the Board's choice.AU-1.1.3
The BMA, in considering the proposed (re-) appointment of an auditor, takes into account the expertise, resources and reputation of the audit firm, relative to the size and complexity of the licensee. The BMA will also take into account the track record of the audit firm in auditing
conventional bank licensees within Bahrain; the degree to which it has generally demonstrated independence from management in its audits; and the extent to which it has identified and alerted relevant persons of significant matters. Finally, the BMA will also consider the audit firm's compliance with applicable laws and regulations (including legislative Decree No. 26 of 1996; the Ministry of Industry and Commerce's Ministerial Resolution No. 6 of 1998; and relevant Bahrain Stock Exchange regulations).AU-1.1.4
In the case of
overseas conventional bank licensees , the BMA will also take into account who acts as the auditors of the parent firm. As a general rule, the BMA does not favour different parts of a banking firm or group having different auditors.
